Can a company become a partner in a partnership firm

This query is : Resolved

sunil jajodia (Querist)
Follow

26 February 2013 1.Can a company become a partner in a partnership firm with same person having its director and partner?

2. Is the partnership firm in any way becomes liable for the existing or any future litigation or liability of the company.

Ajay Mishra

Ajay Mishra (Expert)
Follow

26 February 2013 Hi

MEANING OF PARTNERSHIP
A Partnership is defined under section 4 of Indian Partnership Act, 1932, as “the relations between persons who have agreed to share profits of the business carried on by all are any of them acting for all”. This Definition gives three minimum requirements to constitute a Partnership, viz:
• There must be an agreement entered into orally or in writing by the persons who desire to form a Partnership,
• The object of the agreement must be to share the profits of business intended to be carried on by the Partnership, and
• The business must be carried on by all the partners or any of them acting for all of them.
• Persons who have entered into partnership with one another are called individually "partner" and collectively "a firm".
• The name under which their business is carried on is called the “firm-name”.
• When duration of partnership is not defined, the partnership is "partnership at will". When persons become partner for a particular venture or for a specified time, it is called a "particular partnership".
Partnership is an association of person carrying business and in law the firm name is compendious method of describing partners {Deoha F Guzdar, Bombay vs. CIT Air 1955 SC. 14}.

Ajay Mishra

Ajay Mishra (Expert)
Follow

26 February 2013
TYPES OF PARTNERSHIP
A Partnership can be formed between:
(i) one or more individuals or
(ii) between an individual and a person representing a H.U.F. or
(iii) between an individual and other partner representing his firm, or between Limited Company or a Corporation and an Individual or Partnership firm, or
(iv) between two Partnership firms, or
(v) between a Limited Company or a Corporation and an individual or Partnership firm, or
(vi) between a Partnership firm and H.U.F., or
(vii) between members of HUF in their individual and independent capacity, and
(viii) between a HUF and a member of that HUF independently.

Ajay Mishra

Ajay Mishra (Expert)
Follow

26 February 2013 PROPERTY OF THE FIRM
The property of a Partnership firm will consist of all the assets, movable and immovable brought in by any or all the partners into the firm and also include the goodwill. Section 15 says that subject to the contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purpose of business.
Partner cannot transferany part of the property of firm till the continuation of partnership {Addanki Narayanappa vs Bhaskara Krishnappa AIR 1966 SC 1300}.
It may be stated that relaying upon the specific provision of Section 22 of the English Partnership Act, 1890, the Supreme Court has held that all the property of a Partnership firm, whether, movable or immovable is movable property, and therefore, on retirement of any partner or dissolution Partnership the division of even immovable property among the partners does not amount to transfer of property and the deed of retirement or dissolution does not require registration.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now